3 Stocks to Buy Now for an Upside Potential of Up to 58%
3 Stocks to Buy : Investors looking for high-growth opportunities in the Indian stock market should take note of the latest recommendations from Emkay Global Financial Services Ltd. The firm has identified three stocks—REC Ltd, Gulf Oil Lubricants Ltd, and Delhivery Ltd—that offer significant upside potential, ranging from 46.5% to 58.5%.
If you are looking to capitalize on market opportunities, here’s why these stocks are strong buys right now.
1. REC Ltd – Powering Strong Growth
REC Ltd, a Central Public Sector Undertaking (CPSU) under the Ministry of Power, is a key player in financing power sector projects across India. The company provides funding for power generation, transmission, and distribution, making it a crucial part of India’s energy infrastructure.
- Current Market Price (CMP): ₹409.80
- Market Capitalization: ₹1,07,922.69 Crore
- Target Price: ₹600
- Upside Potential: 46.5%
Why REC Ltd is a Strong Buy?
Emkay Global has recommended a Buy rating due to REC’s stable margins, low credit costs, and improved asset quality. While its growth slightly underperformed due to high repayments, the company remains optimistic about its future outlook.
- Management expects ₹2,200 crore in recoveries next year.
- Growth guidance has been revised to 15-17%, driven by Revamped Distribution Sector Scheme (RDSS) and rising loan demand in the renewable energy and thermal sectors.
With a strong financial position and government backing, REC Ltd is poised for steady long-term growth.
2. Gulf Oil Lubricants Ltd – Riding the Auto Boom
Gulf Oil Lubricants Ltd is one of the top three private lubricant manufacturers in India, producing and marketing automotive and industrial lubricants.
- Current Market Price (CMP): ₹1,121.25
- Market Capitalization: ₹5,528.01 Crore
- Target Price: ₹1,800
- Upside Potential: 58.5%
Why Gulf Oil Lubricants is a Strong Buy?
Despite a slight dip in stock price in the recent session, the company’s fundamentals remain solid:
- Core lube volumes grew 7% YoY, while AdBlue surged 16%, surpassing expectations.
- EBITDA margin is stable at 13.5%, with gross margin improving to 42.4%.
- Management aims for volume growth 2-3x the industry average, driven by premiumization (13-14% YoY growth).
- Tirex’s revenue tripled YoY to ₹40 crore, with EBITDA reaching breakeven.
Gulf Oil Lubricants is strategically positioned to benefit from India’s growing automobile sector and rising demand for premium lubricants.
3. Delhivery Ltd – Logistics Growth Story Continues
Delhivery is one of India’s largest logistics service providers, offering solutions across warehousing, freight, cross-border shipping, and e-commerce logistics.
- Current Market Price (CMP): ₹277.85
- Market Capitalization: ₹20,660.36 Crore
- Target Price: ₹425
- Upside Potential: 51.7%
Why Delhivery is a Strong Buy?
Despite a shortfall in EBITDA due to higher truck rental costs during the festive season, Delhivery is focusing on cost efficiency:
- Partial-Truckload (PTL) segment remains strong, with volumes reaching 147,000 tons in January 2025.
- While B2C logistics faces pressure from industry challenges, the D2C and SME segments are growing by 30% YoY.
- The company has lowered EBITDA estimates for FY26/27 to 9% and 4%, reflecting rising costs.
With strong market demand and improving cost efficiencies, Delhivery presents an attractive long-term opportunity.
Financial Ratios Comparison
| Stock | Market Cap (₹ Cr) | CMP (₹) | Target Price (₹) | Upside (%) | EBITDA Margin (%) | Gross Margin (%) | YoY Growth (%) |
|---|---|---|---|---|---|---|---|
| REC Ltd | 1,07,922.69 | 409.80 | 600 | 46.5% | Stable | Improved | 15-17% (Guidance) |
| Gulf Oil Lubricants | 5,528.01 | 1,121.25 | 1,800 | 58.5% | 13.5% | 42.4% | 7% (Core Lube), 16% (AdBlue) |
| Delhivery | 20,660.36 | 277.85 | 425 | 51.7% | Lowered to 9% | N/A | 30% (D2C & SME Growth) |
Final Thoughts – Should You Invest?
All three stocks—REC Ltd, Gulf Oil Lubricants, and Delhivery—offer strong upside potential backed by solid fundamentals.
- REC Ltd is a great pick for those looking for stability and government-backed growth.
- Gulf Oil Lubricants stands out for its premiumization strategy and strong demand in the automotive sector.
- Delhivery remains a promising bet in the booming logistics industry, despite short-term cost pressures.
Investors seeking high growth and strong returns in 2025 should consider adding these stocks to their portfolio.
Do you own any of these stocks? If not, will you buy them now? Let us know in the comments!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.